End-of-year Financial Reporting
4-H & Master Gardeners
Purpose
•Many 4-H and Master Gardener groups have private bankaccounts. These end-of-year financial reports are to capturethe transactions processed through the private bank accountand to determine the financial position at the end of thereporting period.
•Do not include transactions processed through the countydepository accounts or other bank accounts, such as ADC or4-H foundation accounts.
What is Required?
For all active clubs/groups with a private bank account,the following reports are required:
1)Statement of Income and Expenses
2)Statement of Financial Position
3)Annual Group Property-Inventory Report
4)Peer Review of Group Financial Records: Cover
5)Peer Review of Group Financial Records: Report
6)Copy of bank statement for the period end
For all active clubs/groups without a private bankaccount but with individual inventory or equipmentitems valued at $500 or more OR any firearms, thefollowing reports are required:
1)Statement of Financial Position
2)Annual Group Property-Inventory Report
For active clubs/groups without a private bank accountAND no any individual inventory or equipment itemsvalued at $500 or more AND no firearms, the staffchair can include the club/group on the Certification –No Group Bank Account and No Inventory-Equipmentform, sign and date the form, and submit it with thecounty’s other end-of-year financial reports.
NOTE: Any clubs/groups registered on 4-H Online that were inactive
during the entire reporting period may be identified as “inactive” in an
e-mail. A copy will be kept in the county file to document the club/group
had no activity.
Sample – Certification – No Group Bank Account And
No Inventory/Equipment
The Staff Chair can listclubs/groups that meetthe above criteria on theCertification – NoGroup Bank AccountAnd NoInventory/Equipment.
Download or Print Report Forms
The end-of-year financial reports and the link to theFinancial Guidelines for 4-H and Master GardenerGroups are located on the Information for Clubs webpage on uaex.edu at the following link:
Excel Forms vs. Printable Version (PDF)
There are two versions of the following forms on theInformation for Clubs web page:
•Statement of Income and Expenses
•Statement of Financial Position
•Annual Group Property-Inventory Report
•You can use the Excel forms which include formulas tocalculate many of the totals for you.
•Or if you prefer to print out the forms and write in theinformation and totals, you can use the PDF version.
Financial Reporting Periods
•Active 4-H clubs and groups report on Federalfiscal year
October 1st through September 30th
•Active Master Gardeners clubs report oncalendar-year basis
January 1st through December 31st
Due Dates and Where to Send
•Clubs/groups are to complete, sign, and date the end-of-yearfinancial reports and send them to the Staff Chair at theCounty Extension Office for review.
•Reports are due within 90 days of the end of the financialreporting period from the Staff Chair to the Associate Directorfor Finance and Administration.
•4-H – Due at LRSO - December 31st
•MG – Due at LRSO - March 31st
Statement of Income and Expenses
The Statement of Income and Expenses reports incomereceived and expenses paid during the financial reportingperiod and determines the Net Increase or Net Loss.
•4-HOctober 1st - September 30th
•Master GardenersJanuary 1st - December 31st
Do not include the beginning checking account balance on this form oradd it to the income.
Sample: Statement of Income and Expenses
The purpose ofthe Statement ofIncome andExpenses is todetermine the NetIncrease or NetLoss during thefinancialreporting period.
Carry forward the Net Increase or Net Loss from the Statement of Incomeand Expenses to the Statement of Financial Position: Current Year’s NetIncrease or Net Loss.
Outstanding Deposits and/or Checks
•Income: Income received during the financial reportingperiod that has not been deposited in the bank accountbefore the last day of the financial reporting period should berecorded as income.
•Expenses: Any check written for an expense during thefinancial reporting period that has not cleared the bankaccount before the last day of the financial reporting periodshould be recorded as an expense.
Statement of Financial Position
The Statement of Financial Position is a “snapshot” of theclub’s/group’s financial position at a specific point in time,i.e., on the last day of the financial reporting period.
•4-HSeptember 30th
•Master GardenersDecember 31st
Bank Reconciliation
•Reconciliation: The bank statement should be reconciled byadding any outstanding deposits and deducting anyoutstanding checks from the checking account balance as ofthe last day of the financial reporting period.
•Form: There is usually a bank reconciliation form on the backof the statement. If not, you can list the outstanding depositsand/or checks and each check amount on the copy of thestatement.
Be sure to include a copy of the reconciliation with yourreports.
Instructions for Statement of Financial PositionClubs/Groups with a Private Bank Account
Assets:
•Cash and/or Checking Account:
•Enter the checking account balance (which has been reconciled) asof the last day of the financial reporting period;
•Plus any cash on hand on that date.
•List any other private bank accounts and the accountbalance:
•Savings Account
•Certificates of Deposit (CD)
Assets (cont’d):
•Inventory/Equipment:
•List any individual inventory or equipment items valued at $500.00or more.
•Other:
•List any other assets valued at $500.00 or more:
•Include buildings, vehicles, etc.
•Enter the Total Assets. If you use the Excel form, the total will beautomatically calculated.
Do not include individual inventory or equipment items valued lessthan $500 as an asset.
Liabilities:
•Accounts Payable:
•List any accounts payable to include any short-term debt which has notbeen paid by the end of the financial reporting period.
Example:
The club purchased a trailer and paid a $100.00 deposit before the endof the financial reporting period. The club still owes $457.00 to be paidin the next fiscal year.
The trailer and the full purchase price of $557.00 is listed as an Assetand the $457.00 owed is listed as Liabilities: Accounts Payable (seeSample2).
Liabilities (cont’d):
•Other:
•List any installment payments (such as a vehicle loan) or accruedexpenses which have not been paid by the end of the financialreporting period.
•Enter the Total Liabilities. If you use the Excel form, the totalwill automatically calculate.
Do not include expenses paid during the financial reporting period orany outstanding checks written prior to the end of the reporting periodas liabilities.
Net Assets:
Net Assets - Beginning:
•Include the beginning checking account balance (which has beenreconciled) as of the first day of the financial reporting period;
•4-HOctober 1st
•Master GardenersJanuary 1st
•Plus any cash on hand on that date;
•Plus any assets valued at $500 or more that were purchased oracquired before the first day of the financial reporting period.
Net Assets (cont’d):
•Current Year’s Net Increase or Net Loss:
•Enter the Net Increase (as a positive number) or Net Loss (as a negative number)from the Statement of Income and Expenses.
• Net Assets – Ending:
•Add the Net Increase or subtract the Net Loss from the Net Assets – Beginning todetermine the Net Assets – Ending; in other words, the Net Assets on the last dayof the financial reporting period.
•Add the Total Liabilities to the Net Assets and enter the amount. Thisamount should always equal the Total Assets at the top of the form.
•Read the certification and be sure to include all reports as indicated.
•Sign and date the form.
Sample1: Statement of Financial Position (with no liabilities)
Liabilities: Since inventory,equipment, products, andservices are normally paidat the time of purchase ordelivery, the club/group maynot have any liabilities toreport.
Sample2: Statement of Financial Position (with liabilities)
For the purposes of thisexample, the trailer waspurchased on 09/05/15and $100 deposit paidon that date.
List full value of Traileras an asset - $557.00.
List balance owed ontrailer - $457.00 – as aliability since it will bepaid after the financialreporting period.
Total Liabilities and NetAssets equal TotalAssets.
Instructions for Clubs/Groups without a Private Bank Accountbut with individual inventory or equipmentvalued at $500 or more
Assets:
•Cash and/or Checking Account:
•Write or type “no private bank account.”
•Inventory/Equipment:
•List individual inventory or equipment items valued at $500 or more.
•Enter the Total Assets.
Liabilities:
•Clubs/groups without a private bank account should not have any liabilities.
Net Assets:
•Net Assets - Beginning:
•Include inventory or equipment valued at $500 or more that waspurchased or acquired before the first day of the financial reportingperiod;
•4-HOctober 1st
•Master GardenersJanuary 1st
•If the inventory or equipment was purchased or acquired during thefinancial reporting period, the Net Assets – Beginning will be zero.
•Current Year’s Net Increase or Net Loss:
•Normally, this will be zero for clubs/groups without a private bankaccount. However, you can include inventory or equipment valued at$500 or more as the Net Increase if purchased or acquired during thefinancial reporting period.
Net Assets (cont’d):
•Net Assets – Ending:
•Add the Net Increase to the Net Assets – Beginning to determine the Net Assets –Ending; in other words, the Net Assets on the last day of the financial reportingperiod.
•Add the Total Liabilities to the Net Assets and enter the amount. Thisamount should always equal the Total Assets at the top of the form.
•Read the certification and be sure to include all reports as indicated.
•Sign and date the form.
Sample: Statement of Financial Position (no private bank account but withinventory or equipment valued at $500 or more)
For the purposes ofthis example, thetrailer was purchasedon 10/31/13 and paidin full prior to thefinancial reportingperiod.
List full value of traileras an asset - $557.00.
Include full value of traileras Net Assets – Beginning
since trailer waspurchased prior to thefinancial reporting period.
Annual Group Property-Inventory Report
The Annual Group Property-Inventory Report is to record all individualinventory or equipment items valued at $500.00 or more and ANY AND ALLfirearms regardless of value (including guns, rifles, shotguns, muzzleloaders,and pistols; as well as, BB guns, air guns, and bows).
Active clubs or groups that have a private bank account but do not have anyequipment or inventory meeting the above criteria are still required to submita report. Do not submit a blank report. Write or type “no inventory” or“zero inventory” under the Item Description, sign and date the form.
NOTE: The inventory or equipment included on this report may be different from theinventory or equipment included as assets on the Statement of Financial Positionsince all firearms are required to be listed on this report regardless of value.
Sample: Annual Group Property-Inventory Report
Peer Review of Group Financial Records
Guidelines for the Peer Review Committee:
•The Peer Review Committee should be composed of at least twomembers.
•The purpose is to review the accounting records and financialstatements prepared by the Group treasurer for accuracy andreasonableness.
•Committee members must not include the treasurer; anyone relatedto the treasurer or any individual who signs checks, approvesexpenditures, is involved in any way in the financial affairs of theclub/group, or any Extension employee.
Peer Review Cover Sheet
Fill the form out ascompletely aspossible with allpertinent information.
The IRS tax IDnumber (EIN)associated with theprivate bank accountmust be listed on thePeer Review CoverSheet along with theaudit date.
Peer Review Report
Committee membersmust check the itemsreviewed at the top ofthe Peer ReviewReport or the reviewis invalid.
Year-end Procedures for Peer Review Committee
•Check each month’s reconciled bank statement and canceledchecks. Make sure the ledger postings are current andcomplete.
•Examine all voided checks. If a voided check is not on file,verify that the check has not cleared the bank.
•Total all funds received. Verify that receipts were written andthat funds were listed on the ledger reports.
•Total all deposits made to the bank account. This total shouldequal the total of all funds received.
•Total all expenditures. Verify that a written bill is on file foreach expenditure. Verify all expenditures were paid by check,not in cash.
•Examine the year-end financial reports. Verify that theamounts listed agree with the amounts in the treasurer’sledger reports, the total in the check register, and thereconciled bank statements.
•The treasurer’s total balance at the beginning of the year plusall funds received, minus all expenditures, must equal thetreasurer’s total balance at the end of the year.
•Examine the Annual Group Property-Inventory Report andmake sure that all property/equipment has been properlyaccounted for and documented (see instructions forcompleting the report). A letter or receipt should be on filefor each gift received, documenting donor, date, value andany restrictions placed on the donation by the donor.
•Review the prior year’s report and determine if appropriatefollow-up actions were taken.
WHERE TO SEND: Once completed, clubs/groups are to send therequired reports to the Staff Chair at the County Extension Office in atimely manner, giving him/her enough time to review and send thereports on to the Associate Director for Financial and Administration’soffice within 90 days of the end of the financial reporting period.
The Staff Chair will review the reports for completion and, onceapproved, will sign the reports before sending to the LRSO at theaddress below.
Associate Director for Finance and Administration
U of A – Division of Agriculture
Cooperative Extension Service
2301 South University Avenue
Little Rock, AR 72204
